HSA 525 assignment 2

I am appointed as a Chief Financial Officer of the Norton Healthcare, which is operating in different parts of the country with hundreds of branches. All the financial statements should be made in each financial year, and that must be submitted to an independent financial organization. The firm will then analyze and give its recommendation as per the financial situation of the company. Company is more evaluating its strategies and decision regarding the business. The financial Statement is a necessary tool for the investor’s so that they can make investment decisions as per the financial performance of the company.

I have reviewed the financial health of the company by doing an internal survey. Years which I have covered during this are 2012, 2013 and 2014. The financial situation of the company is as following report.

2012:

2013:

2014:

In the Three consecutive years company has shown tremendous growth in terms of earning and increase in the total asset. In the year of 2012 the revenue generated by the company was $716,275,861 which was increase by the $ 65,772,910 in the year of the 2013. This increase in the Net asset in the beginning of the year shows a perfect path for the company as well as for the economy. Later in the year of the 2013, net asset of the company is become $2,241,164,734 which increases to $ 2,354,735,888 in the year of 2014. This shows a very good trend to the economy and the organization.

After analyzing the organization’s data one thing which impacts the organization is the non operating loss, the non operating losses in the year of 2013 increased many times and later on it increased many folds. This has negative impact on the performance of the company. The severe losses which are counted in the non operating losses are gain or losses from the investment, property sell and from the currency exchange. Non operating revenues and expenses show a loss of $1.9 million in the year of 2013, which was about $39.7 million in the year of 2012. The losses on the extinguishment of debt associated with this bond issued total $3.8 million. Losses on some software and hardware were about $2.4 million. The change in mark to the market loss position was about $ 10 million in the year of 2012 which was later improved to the $11.8 million.

As a CFO of the Organisation, I have some regulation which could be issued so that losses can be made under control. Non- Operating losses which accounts to millions in the year of 2013-2014, which can be minimized by selecting the thing which are involved within the organization and can be done separately by mitigating the losses. Losses due to the software and hardware which accounts for the $2.4 dollar, can be mitigate by the selecting the main course of action. Removing unnecessary hardware and software equipments and doing auction could benefit the organization as well as will gain some money in long-term. Other losses which accounts in the Non-operating income are debt associated with this bond, which is about $3.8 million.

Norton healthcare is working in different sectors and maintaining the growth rate in continuous years. Total assets of the company in the year of 2013-2014 are $2,241,164,734. An internal audit has been done, which reflects all the earning and losses of the company. The non-operating loss is one of the sectors which impact the organization. So we need to done some regulations and define some criteria’s in which company could enhance the operating condition and the revenue. The main components to track the organizations growth is by maintaining Balance sheet, by issuing finance statements per year and by the Income statements. These three things help an organization to track the yearly growth and help to manage the change which could benefit the company and enhance the total asset.

Reference:

1. Finance reports: Norton Healthcare

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